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Are you active in marketing, communications, media, or do you offer online advertising services? Or are you involved in purchasing advertising as an organization or political party? If so, you will be affected by the new European Regulation 2024/900 on transparency and targeted political advertising, which will come into effect on October 10, 2025. These rules not only entail new obligations, but also significant risks in the event of non-compliance. In this blog, we explain what this regulation means for your organization and how you can prepare for it. What is political advertising according to the regulation? The regulation uses a broad definition of political advertising. Political advertising includes all communication intended to influence public opinion on elections or political issues, even if it does not originate from political parties. The obligations may therefore also apply to civil society organizations, companies, or lobby groups. The Regulation itself uses the term “sponsor” to refer to the party commissioning or purchasing political advertising, which in this blog is referred to as the “client”. ‘Sponsor’ means the natural or legal person at whose request or on whose behalf a political advertisement is prepared, placed, promoted, published, delivered or disseminated Obligations for providers and publishers of advertising services The new rules apply to all parties that offer or purchase political advertising, i.e. both providers and clients. Providers of advertising services – from online platforms to media agencies – must now, among other things: Check whether an advertisement is political advertising, who the client is, who has control over the client, where the funding comes from, and request other information that is relevant to compliance with the regulation; Record the information obtained; Take reasonable measures to verify that the information provided by the client is correct; Provide transparency about political advertisements that run on their platform; Provide a mechanism through which non-compliance with the regulation can be reported. Providers may not discriminate on the basis of the place of residence or place of establishment of the client. However, in the last three months prior to an election, political advertising services relating to that election may not be provided to clients from outside the European Union. Providers must also check this with their clients. What does this mean for clients? Clients are required to indicate whether any advertising is political in nature and to be fully transparent about funding and objectives. Incorrect or incomplete information may result in sanctions. In addition, clients must take into account stricter transparency requirements, such as disclosing the funding and objectives of the campaign. Processing of personal data and targeting What is targeting in political advertising? Targeting means that political advertising is specifically aimed at certain groups or individuals. This is done, for example, on the basis of their online behavior, location, or demographic data. Targeting is only permitted in the context of political advertising if consent has been given. Furthermore, only personal data obtained by the controller from the data subject may be used, and therefore no data from third parties. These rules apply in general to techniques for delivering advertising messages related to political advertising that involve the processing of personal data. If the controller has reasonable certainty that the data subject is under the age of 17, no personal data may be processed for the purpose of offering political advertising. Transparency and accountability in targeting Providers and publishers of advertising services must comply with strict accountability and transparency obligations. For example, they must establish and maintain an internal policy; keep records; and clarify the criteria used for selecting target groups and the personal data processed in doing so. In principle, it is prohibited to use special categories of personal data, such as political opinions, religion, or ethnicity, for targeting or amplification. This is only permitted if very strict conditions are met and explicit consent has been given. Consequences of non-compliance In the Netherlands, supervision of the regulation is carried out by the Dutch Data Protection Authority (Autoriteit Persoonsgegevens, AP). The AP has extensive enforcement powers. Violations of the rules on political advertising can result in heavy fines, reputational damage, and even a ban on offering advertising services. It is therefore important to ensure compliance in good time. What should you do now? It is important to adapt your processes and contracts to the new rules in good time, before October 10, 2025. Keep in mind that the next House of Representatives elections will be held on October 25. The new rules will therefore apply to the final phase of the campaign. Any communications made in the context of this campaign will already have to comply with the new rules. How can we help you? The implementation of this regulation requires legal, technical, and organizational adjustments. Our firm has extensive experience with this type of regulation and is happy to assist you with: Assessing your current processes; Drafting or adapting internal procedures and contracts; Training your employees; Providing guidance on supervision and enforcement. Would you like to know what these rules mean for your organization in concrete terms? Please contact Jan Baas or a colleague from the Data & Privacy Team. They are happy to assist you. 

On 30 June 2025, the Stichting Eerlijke Handelspraktijken (“SEH” – Foundation for Fair Trade Practices) initiated legal proceedings under the Dutch Act on collective damages claims (Wet afwikkeling massaschade in collectieve actie or “WAMCA”). The collective action targets six major energy suppliers, namely Vattenfall, Eneco, Essent, Greenchoice, Energiedirect, and Budget Thuis. SEH alleges that these suppliers unlawfully modified the energy tariffs of customers with variable energy contracts during their contract period. According to SEH, the energy suppliers must therefore financially compensate the affected consumers for past damages. Background Dutch energy suppliers all use the same set of general terms and conditions for their contracts when dealing with the supply of energy to consumers. These terms were developed through extensive consultation between energy suppliers represented by the Dutch energy trade association Vereniging Energie-Nederland, the Consumers’ Association (Consumentenbond), Vereniging Eigen Huis, and – in the background – the regulatory authority, the Netherlands Authority for Consumers and Markets (Autoriteit Consument & Markt or ACM). The general terms and conditions allow the supplier to unilaterally change supply tariffs under certain conditions. Until recently, courts deemed this tariff adjustment clause permissible, provided consumers had the right to terminate the contract and were sufficiently informed about the tariff change. However, on 25 March 2025, the Amsterdam Court of Appeal ruled that Vattenfall applied the tariff adjustment clause unfairly, as the energy supplier had failed to inform the customer in a clear and comprehensible manner and did not provide a genuine opportunity to terminate the contract. The court therefore ordered Vattenfall to repay the excess amount charged due to the unlawful tariff increase. Implications of the Vattenfall Ruling for energy suppliers Vattenfall disagrees with the Amsterdam Court of Appeal’s decision and has filed an appeal in cassation with the Dutch Supreme Court. The Supreme Court’s decision is now the center of market attention. The Supreme Court’s decision could have far-reaching consequences for energy suppliers. Market dynamics may also shift, possibly requiring a critical reassessment of the structure and functioning of variable energy contracts. Consumer trust is under pressure due to potential reputational damage. Lastly, from a legal perspective, the Supreme Court’s judgment may lead to stricter scrutiny of contract terms across multiple sectors. In short, a great deal is at stake. Next Steps Following SEH’s initiation of the collective action, attention now turns to whether additional parties will join the case within the three-month window. Should the Supreme Court rule against Vattenfall, SEH is expected to broaden its claim to include other energy providers and pursue compensation for their customers as well. If you have any questions about the Vattenfall ruling or collective actions, please contact Arnout Koeman or one of our Energy specialists.

Until 31 July 2025, the European Commission is organising a consultation on the revision of the state aid rules for Services of General Economic Interest (“SGEI”). In this consultation, the European Commission wishes to gather information from the market on the application of the SGEI rules and possible areas for improvement. This consultation is particularly relevant for public bodies, social housing providers and developers involved in housing projects and the delivery of affordable housing, as they are regularly constrained regarding the possibility of public funding for these projects. The European Commission wishes to adjust the SGEI rules accordingly, so that more housing projects can be realised within the frameworks of state aid law. What are the SGEI state aid rules? The SGEI rules provide a legal framework within which governments may grant state aid to organisations that perform services of general economic interest. These are services considered of general interest within society but which are usually not profitable, such as the realisation of social housing. The aim is to ensure that such aid does not lead to unfair competition within the European single market. The rules define the conditions and the amount of aid that may be granted without prior approval from the European Commission. Why this SGEI rules review? The European Commission sees a need to modernise the rules, partly because of the ongoing housing crisis across the EU. With the revision, the Commission wants to make it simpler and faster for member states to provide support for affordable and energy-efficient housing. Some technical adjustments are also proposed to improve the application of the rules. Your input sought The consultation offers government bodies and other stakeholders an opportunity to share their experiences and wishes. This is the time to raise practical bottlenecks and contribute ideas on the future of state aid for housing. Practical information Period: 5 June – 31 July 2025 Location: online Does your organisation deal with housing projects and state aid? Take part in the consultation by answering the questionnaire and contribute to better rules for affordable housing! If you would like assistance with this, or if you have other state aid questions, please do not hesitate to contact Monika Beck or one of our other specialists.

Introduction More and more people are buying their groceries online, which has for some time raised interesting legal questions about the status, rights and obligations of those working for such companies. Sometimes it can also be unclear which (collective) terms and conditions of employment apply. Collective agreement for food companies applicable The Arnhem-Leeuwarden Court of Appeal recently had to assess whether the collective agreement for food companies, which had been declared generally binding in the past, had previously been applicable to parties such as Picnic, Flink and Getir until they were granted dispensation from that collective labour agreement. Said parties operate ‘virtual shops’, where consumers can order groceries, but cannot physically shop. The scope of application for the collective labour agreement for food companies had already been broadened in 2019, and moreover, the scope of the collective labour agreement already took into account ‘virtual establishments’ of shops since 2001. Regarding the scope of the collective labour agreement the court ruled that it is sufficient that a legal entity primarily operates a grocery store, either itself or in conjunction with another group company.  If one group company only delivers, but the group company operating the shop cannot do so without that delivery, the delivering group company also falls under the collective labour agreement. All objections by Picnic and the other litigants about implausibility of the consequences of the applicability of the collective labour agreement and the practical impossibility of compensating 35,000 employees are dismissed by the Court of Appeal. The court had no doubt that its interpretation of the collective labour agreement is correct and as intended. As a result of this conclusion, tens of thousands of (former) employees have to be compensated; a substantial and undoubtedly expensive task for the employers involved. Practical tips This case – once again – makes it clear that employers run the risk of being unintentionally obligated to apply a collective labour agreement. (International) employers wishing to enter the Dutch market would do well to identify, as far as possible, which collective labour agreements may be applicable and, in order to avoid large claims and complicated reparations, not to assume too lightly that a particular collective labour agreement does not have to be applied. Even if a group company only performs work that is “related to” work covered by the collective labour agreement, the employer may still be bound by the obligations of the collective labour agreement. Contact Do you have questions about a collective labour agreement applicable within your sector or would you like to exchange views? Please feel free to contact Gerard Zuidgeest, Jaap Harrijvan or one of our other employment law specialists.

Introduction The question if a self-employed person should qualify as an employee remains a hot topic. Qualification as an employee can have far-reaching consequences, such as the obligation to pay premiums and payroll taxes retroactively, as well as dismissal protection, continued salary payment during illness, vacation days and vacation allowance. Should pension premiums also be paid retroactively? Pension as a condition of employment The principle of the Pension Act is that an employer is not obligated to offer a pension to his employees. Nevertheless, an employer may involuntarily be bound to a pension plan, for example because a collective bargaining agreement requires it or because an industry pension fund is compulsory. Retrospective premium obligation? Employers operating in sectors in which employees are entitled to pensions under a collective bargaining agreement or a compulsory industry pension fund might face retrospective liability for past pension contributions if a self-employed person is deemed to be an employee. After all, for pension funds, the premium is due even if an employee was not yet registered. The North Holland District Court recently ruled on a case in which an employee was employed as an employee from 1 January 2022, having first worked as a self-employed person for the company from 1 January 2016. He had always done the same work as other employees, who had always accrued pension benefits. The employee in question had also accrued a pension since 1 January 2022. The employer had offered the pension scheme to its employees without obligation. Was the self-employed worker now entitled to pension accrual retroactively from 1 January 2016? The court ruled that there was no legal basis for the retroactive payment of pension benefits in this particular case.  Practical tips Although the consequence of a self-employed person being classified as an employee does not always result in pension premiums being due retroactively, employers would do well to take into account the risk of pension premiums being due when assessing the risks of hiring self-employed persons, and to make organisational, financial and/or contractual provisions for this if necessary. Contact Do you have questions about pension in case of self-employment or would you like to exchange views? Please feel free to contact Jaap Harrijvan or one of our other employment law specialists.

On 14 May 2025, the Administrative Division of the District Court of The Hague (‘the Court’) rendered its decision in  proceedings between Boehringer Ingelheim Vetmedica GmbH (‘Boehringer’) and the Dutch Patent Office (Octrooicentrum Nederland, ‘OCNL’). The Court upheld OCNL’s refusal to grant an SPC for a veterinary medicinal product containing the active ingredient ciclesonide. This case is of particular interest as it clarifies that, for the purpose of determining the ‘’first’’ marketing authorisation (‘’MA’’) within the meaning of Article 3(d) of Regulation 469/2009 (‘’SPC Regulation’’) ,  no distinction is to be made between MAs granted for human or veterinary use. The Court considered it an acte éclairé based on the CJEU’s decisions in Santen (C-673/18) and Pharmacia (C-31/03).   What preceded Boehringer holds EP 2 934 479 (‘’EP 479), which claims the use of ciclesonide for the treatment of airway disease in horses. Boehringer markets its product under the brand name ‘Aservo’. EP 479 was granted on 19 September 2018 on the basis of an application filed in 2013. On 28 January 2020 Boehringer received the MA for its product Aservo (EU/2/I9/249). On 30 March 2005, an unrelated company to these proceedings, Covis Pharma Europe B.V., received a MA (RVG 31633) for the medicinal product containing the active ingredient ciclesonide used to control persistent asthma in adults and adolescents (aged 12 years and older). It was marketed under the brand ‘Alvesco’. On 22 June 2020, Boehringer filed an SPC application with OCNL based on EP 479 and its MA for Aservo. OCNL rejected Boehringer’s application, arguing that the veterinary MA could not be considered the “first MA” under Article 3(d) of the SPC Regulation in light of the earlier MA for Alvesco. Boehringer objected against that rejection. In April 2024 OCNL, declared Boehringer’s objection unfounded. Therefore, Boehringer appealed to the Administrative Division of the Court. Assessment of the Court – First MA The Court analyses the caselaw of the CJEU in order to answer the question how to interpret ‘’first MA’’ within the meaning of Article 3(d) of the SPC Regulation. First, the Court considers the interpretation given by the CJEU in Santen of the term ‘’product’’ under Articles 1(b) and 4 of the SPC Regulation, as exclusively referring to the active substance or combination of active substances, irrespectively of the therapeutic use or target species. The term “product” needs to be interpreted strictly. The first MA relates to the authorisation of a product containing the active substance or combination of active substances in question, regardless of the therapeutic application of the active substance(s) for which that MA was granted (see also CJEU decision Abraxis Bioscience (C-443/17)). The Court further refers to Pharmacia, in which the CJEU held that no fundamental distinction is to be made between human and veterinary medicinal products in applying the SPC Regulation. The difference in intended use (human or animal) is not a decisive criterion for the grant of an SPC. The Court observes that Boehringer’s reading of Neurim could not be reconciled with the CJEU’s subsequent judgments, particularly Santen, in which the Court expressly distanced itself from its decision in Neurim. According to the Court the text of Article 3(d) of the SPC Regulation is clear: the MA on which the SPC is based must be the first MA for marketing of the product. Both MAs relate to the same product, i.e. ciclesonide. For the interpretation of first MA it is irrelevant whether the MA has been granted for human or veterinary use. The SPC application for Aservo was correctly rejected. The Court concludes that the legal framework, as clarified by the CJEU, leaves no room for a broader interpretation and considers the matter an acte éclairé. There is no need refer the case to the CJEU for preliminary questions. Conclusion When assessing the meaning of first MA, as mentioned in Article 3(d) of the SPC Regulation, it is irrelevant to make a distinction between an MA granted for human or for veterinary use. If the active ingredient is the same, they both relate to the same product. The NL decision does not stand alone. Some of the courts in other EU states have followed the same line of reasoning when dealing with Boehringer’s SPC applications for Aservo. In France, the French Patent Office refused to grant the SPC, which decision was upheld by the Paris Court of Appeal on 17 January 2025. The court explicitly referred to Abraxis and Santen, confirming that a prior MA for human use precludes the grant of a subsequent SPC for veterinary use of the same active substance. In Germany, the application was likewise rejected by the German Patent and Trade Mark Office. An appeal is currently pending before the Federal Patent Court (Bundespatentgericht). Although SPCs have reportedly been granted in some other Member States, the NL Dutch Court observes that these decisions often lack explicit reasoning, may reflect different national administrative practices, and do not alter the uniform interpretation required under EU law.

The transition to a sustainable economy requires not only innovation and decisiveness, but also smart financing solutions. Two instruments that are playing an increasingly important role in this regard are green bonds and sustainability-linked loans (SLLs). In this blog, we explain what these forms of financing entail, what the legal considerations are and how we support our clients in this regard. What are green bonds? Green bonds are bonds whose proceeds are used exclusively for sustainable projects. Examples include the construction of a wind farm, making real estate more sustainable or investing in clean public transport. The issuer – often a company, bank or government – contractually commits to spending the money raised only on these green projects. A practical example: A Dutch developer issues a green bond to finance the construction of a new solar park. Investors, including local entrepreneurs and even private individuals, can thus be sure that their money is contributing to the (local) energy transition. Each year, the developer reports on progress and environmental gains, such as the amount of green electricity generated. What are sustainability-linked loans (SLLs)? SLLs are loans in which the interest rate or other conditions are linked to the borrower’s achievement of sustainability targets. What makes them special is that the borrowed money can be spent freely, but the borrower commits to achieving specific ESG targets, such as reducing CO2 emissions or increasing the proportion of women in management. Real-life example: An international manufacturing company takes out an SLL with a bank. The loan agreement stipulates that the interest rate will fall by 0.2% if the company manages to reduce its CO2 emissions by 15% within three years. If the target is not achieved, the interest rate will increase. This creates a financial incentive to do business sustainably. Legal considerations With both forms of financing, it is essential to set out the agreements clearly and in a verifiable manner. This includes: Clear definitions of ‘green’ projects or KPIs; Independent assessment and reporting; Consequences of not achieving the targets; Transparency towards investors and regulators. Our ESG team The lawyers in our ESG team are happy to advise on drafting and assessing these contracts, structuring the financing and complying with the increasingly stringent regulations in the field of sustainability. Our ESG project team combines in-depth knowledge of financing law with up-to-date insights into sustainability legislation. We advise on setting up green bonds and SLLs, from the initial exploration to closing and post-closing reporting. Want to know more? Would you like to know what green bonds or SLLs can do for your organisation, or do you have questions about the legal aspects? Feel free to contact our ESG project team. We are happy to work with you to find sustainable financing solutions that work in practice.

Blockchain: more than just hype Blockchain is often associated with cryptocurrencies such as Bitcoin, and that is only partly justified. Blockchain technology has a much broader scope. In the world of M&A, blockchain offers a disruptive force that can transform traditional processes. From streamlining due diligence to tokenising ownership certificates, blockchain offers concrete benefits that not only save time and money, but also increase security and transparency. For M&A professionals, investors and entrepreneurs, blockchain is no longer a futuristic concept, but a strategic tool that can fundamentally change the way transactions are carried out. Because of the potential of blockchain, we also use this innovative application within La Gro. In 2019, La Gro (Benjamin Niemeijer) was nominated for the Gouden Zandloper (Golden Hourglass) award for the issuance of share certificates via blockchain technology. What is blockchain and how does it work? Blockchain is a digital and decentralised ledger, similar to a digital database. Transactions can be recorded on the blockchain in a secure and transparent manner. Each transaction forms a ‘block’ of code. Once a block is full, it is added to a chain of previous blocks. Hence the term ‘blockchain’. This chain of data blocks is shared and validated by a network of users. This ensures that data cannot be manipulated. This makes blockchain reliable and transparent and offers enormous certainty about the accuracy of the data. Application of blockchain in M&A Blockchain has the potential to play an important role in the M&A process, where a lot of time is traditionally spent analysing and verifying data and where certainty about the accuracy of that data is crucial. Tokenisation: the new era of property transfer One of the most disruptive applications of blockchain in M&A is tokenisation. Tokenisation is the digitisation of ownership (proofs) (such as shares, real estate or other assets) in the form of tokens on a blockchain. This process offers a level of security and efficiency that traditional methods (such as notarial deeds and shareholder registers) cannot match. Smart contracts: automation of critical processes Smart contracts are digital agreements that are automatically executed once predefined conditions are met. In the M&A process, smart contracts can be used for escrow arrangements (the automatic release of funds once certain conditions are met) and earn-out agreements (relevant information for calculating earn-outs can be recorded on the blockchain). Suppose an earn-out depends on the turnover of an acquired company. By recording turnover data on the blockchain, all parties involved have access to the same, immutable data, making manipulation impossible. This provides certainty for all parties, largely prevents discussions about the accuracy of the figures and speeds up the settlement of the earn-out. Faster and more reliable due diligence The due diligence process is often one of the most time-consuming parts of an M&A transaction. Blockchain can significantly speed up this process through, among other things, transparency (data is shared via a blockchain-based data room, where all parties have access to the same, immutable information) and reliability (because data on the blockchain cannot be manipulated, buyers and sellers can rely on the accuracy of the information). This means that due diligence is not only faster, but also less prone to errors. For M&A professionals, this means significant savings in time and costs, while improving the quality of the process. Disruptive value of blockchain for M&A The application of blockchain in M&A is also relevant and valuable for the following aspects: Efficiency and cost savings: the old-fashioned process of maintaining shareholder registers and drawing up deeds of transfer is time-consuming, expensive and prone to human error. A shareholder register can get lost, be incomplete or contain incorrect numbers. Blockchain can eliminate the need for intermediaries such as notaries, drastically reducing transaction costs. Reliability, transparency and security: a blockchain-based register is up to date, immutable and, with a good system, always accessible and consultable. This prevents situations in which (shareholder) registers are incomplete or out of date. Flexibility: for companies that regularly want to transfer small amounts of (certified) shares (e.g. in the case of employee participation or interests in a fund), blockchain offers a fast and secure solution. Decentralisation: no more dependence on central parties such as notaries or banks. Immutability: data on the blockchain is permanent and cannot be manipulated. Accessibility: blockchain makes it possible to trade ownership and assets worldwide, without the limitations of traditional systems. A concrete example: using blockchain technology, share certificates can be transferred within seconds at minimal cost. This makes it easier for start-ups and other companies to attract investors, even for small amounts, because transaction costs are negligible and ownership rights are immediately established. Conclusion: blockchain as a strategic tool Blockchain is no longer a hype, but a technology that is ready to transform the world of mergers and acquisitions. From tokenising ownership to automating contracts and accelerating due diligence, the benefits are clear and concrete. For M&A professionals, this means not only a more efficient process, but also a competitive advantage in an increasingly fast-changing market. Studio M&A La Gro Do you have questions about the applications of blockchain in M&A? Or would you like to learn more about how this technology can improve your transactions? Then come to our event Studio M&A La Gro on 19 June 2025 and discover how blockchain can transform your M&A processes. Keep an eye on our website and further posts.

The Netherlands Authority for Consumers and Markets (ACM) has recently issued a clear call to companies in the food sector: review and improve your sustainability claims. This call is not optional. The ACM emphasizes that it will actively monitor compliance with the rules and, if necessary, take enforcement action. What does this mean for companies in the food sector? Why this call? Sustainability claims are playing an increasingly significant role in the marketing of food products. Consumers want to make informed choices and consider sustainability in their purchasing decisions. However, the ACM has observed that many claims in the food sector are unclear. This not only undermines consumer trust but can also lead to unfair competition among companies. For example, the ACM notes that it is often unclear what labels, logos, and certifications represent or what a sustainability claim specifically entails. The ACM has previously scrutinized sustainability claims in other sectors, such as clothing, energy, and transportation. Now, it is the food sector’s turn. The Sustainability Claims Guidelines: the basis for compliance The ACM directs companies to its updated Sustainability Claims Guidelines (2023). These guidelines outline five key rules that sustainability claims must adhere to: Use clear, specific, and complete sustainability claims; Substantiate sustainability claims with facts and keep them up to date; Make fair comparisons with other products or competitors; Describe future sustainability ambitions in concrete and measurable terms; Ensure that visual claims and certifications are helpful and not misleading. What’s at stake? The ACM has announced that it will actively check whether companies have adjusted their sustainability claims following this call. If claims do not comply, the ACM has stated that it may take enforcement action. Companies using sustainability claims that do not meet the Sustainability Claims Guidelines may face fines or orders subject to penalty payments. What can your company do? To avoid risks and ensure compliance with the law, it is essential for companies to take action now. A few practical tips: Inventory Your Sustainability Claims. Map out all the claims you use on products, in advertisements, and in stores; Assess Your Claims Against the Sustainability Claims Guidelines. Verify whether your claims comply with the ACM’s five key rules as outlined in the Sustainability Claims Guidelines; Collaborate with Experts. Have your claims reviewed both legally and substantively by specialists. This can help identify and mitigate risks; Communicate Transparently. Ensure that your claims are understandable to consumers and supported by clear information; Stay Up-to-Date. Closely monitor developments in laws and regulations regarding sustainability claims. Conclusion The ACM’s call is a clear warning to the food sector: ensure that your sustainability claims are honest, clear, and substantiated. If not, the ACM may proceed with enforcement. Do you need assistance in reviewing or adjusting your sustainability claims? We are happy to help you mitigate risks and bring your claims into compliance with the law. Feel free to contact Arnout Koeman or one of our other specialists.

On February 19, 2025, a bill was proposed that limits the compensation scheme for the transition payment in case of dismissal due to long-term disability to small employers. This proposal has significant implications for employers. The compensation scheme, originally intended to relieve employers, will now only be available to small employers. This article discusses the details and implications of this change. Limitation on Compensation for Transition Payment The compensation scheme for the transition payment was introduced to support employers in paying the transition payment after 104 weeks of illness. For many employers, it felt unjust to have to pay a transition payment after two years of continued salary payment. This often led to ‘dormant employment contracts’, where the employment contract was not terminated to avoid payment of the transition payment. With the new bill, the government aims to limit the compensation scheme to small employers. Small employers are defined as those who have been active for less than two years or have a wage bill of no more than 25 times the average taxable wage per employee. In 2025, this threshold was set at a wage bill of no more than € 990,000 per year. Implications for larger employers For medium-sized and large employers, this change means that they will have to pay the transition payment themselves in case of dismissal due to long-term disability. This can have significant financial consequences. The question arises whether employers are still obliged to terminate the employment contract if they are not compensated. The legislator leaves this to the judiciary, but it is likely that existing case law will be maintained. The change is expected to take effect on July 1, 2026. No transitional law is proposed, meaning the new rules will apply immediately. Employers will only be eligible for compensation if the 104-week waiting period ends before the law comes into effect. No specific arrangements have been made for special employers, such as social development companies. Contact Do you have questions about the compensation scheme for the transition payment or would you like to discuss it? Please contact Gerard Zuidgeest, Rose Horstman, or one of our other employment law specialists.

On February 21, 2025, the Supreme Court ruled on the classification of employment relationships, specifically in the context of self-employed workers. As early as 2021, the Amsterdam District Court ruled that Uber drivers are employed under an employment contract, meaning that Uber must comply with the Taxi Transport Collective Labour Agreement (CAO). On appeal, the Amsterdam Court of Appeal asked preliminary questions to the Supreme Court regarding the role of the criteria ‘entrepreneurship’ in assessing the employment relationship. The Supreme Court has now provided answers to these questions. No hierarchy in criteria In the Deliveroo ruling, the Supreme Court ruled that the assessment of whether an agreement constitutes an employment contract depends on all the circumstances of the case. This includes the nature and duration of the work and the way the work and working hours are determined. In the Uber ruling, the Supreme Court clarified that there is no fixed hierarchy among these criteria. This means that all nine criteria must be equally weighed. For employers, this means that the classification of an employment relationship can be more complex, as every aspect of the working relationship must be assessed. This can lead to different outcomes, even if two workers perform the same work under the same conditions. Entrepreneurship: external aspects matter An important aspect emphasised by the Supreme Court is the entrepreneurship of the self-employed worker. The Supreme Court considers that the entrepreneurship criterium is not given more weight than the other criteria. This means that entrepreneurship can be decisive for the classification of the agreement. Not only does the general entrepreneurial situation of the worker in the relationship between the workers and the client play a role (internal entrepreneurship), but circumstances outside the relationship are also important (external entrepreneurship). In terms of external entrepreneurship, one might consider whether the worker is registered with the Chamber of Commerce, the number of clients the worker has outside the specific relationship, or the number of investments the worker makes for its own business. Retaining self-employed workers? Stimulate entrepreneurship! Employers are advised to encourage the external entrepreneurship of their self-employed workers. This can be done, for example, by encouraging them to take on assignments from multiple clients and ensuring that the worker clearly profiles themselves as an entrepreneur, for instance, with their own website. Contact Do you have questions about the classification of employment relationships or would you like to discuss this further? Please contact Gerard Zuidgeest, Rose Horstman, or one of our other employment law specialists.

When should an employee disclose information about chronic physical or psychological complaints during a job application? This was the subject of a recent ruling by the Court of Appeal in ‘s-Hertogenbosch. The disclosure of medical Information in the application procedure An applicant is not required to voluntarily provide medical information. This is only different if the applicant knows at the time of concluding the employment contract that their health condition would significantly and long-term hinder them in performing the job duties. Additionally, an employer may not ask questions about the health condition of a prospective employee, past sick leave, or any limitations during the application process, except in the context of a legally permitted medical examination. Ruling: the facts in the case before the Court of Appeal in ’s-Hertogenbosch The employee in this procedure had suffered from chronic psychological complaints (PTSD and an anxiety disorder) since 2011 following an unsuccessful surgery. The employee applied for a position as a security guard at a courthouse in October 2023 and did not disclose his medical situation during the application process, nor the fact that he was currently unfit for work as a security guard at the Department of Transport and Support (DV&O) of the Ministry of Justice and Security. The employee was hired and was declared fully recovered by the DV&O company doctor at that time. Shortly after starting at the courthouse, the employee fell ill. The employer requested the termination of the employment contract due to gross misconduct, arguing that the employee had failed to disclose his medical situation. The employer’s requests were denied in the first instance. Court’s judgment: no disclosure obligation for employee The Court of Appeal, like the subdistrict court, ruled that there were no grounds to terminate the employment contract. The court ruled that the disclosure obligation only exists if the illness or disability makes the applicant unfit for the position and the applicant knew or should have understood this. In this case, the employee had fallen ill several times at his previous employer, but this was not due to the specific job requirements, and the employee had always fully recovered. The position at the courthouse was less demanding than the position at DV&O, leading the employee to believe that his chronic illness would not be an issue. The employer argued that an applicant must also disclose their illness if the illness does not absolutely prevent the performance of essential job requirements, but the applicant will experience significant hindrances in fulfilling the role. The court dismissed this argument, as it would mean that every chronically ill person would have to disclose their chronic illness during a job application, which is contrary to the protection provided by the Dutch Equal Treatment Act on Grounds of Disability or Chronic Illness (Wgbh/cz). Practical tips As an employer, do not ask questions about the health condition, past sick leave, or any limitations of the applicant during the application process, unless it concerns a legally permitted medical examination. Additionally, ensure that the job requirements are detailed and are clearly stated in the job application and/or job profile. Discuss these requirements during the application process and ensure written documentation. If possible ask the former employer for references. Contact Do you have questions about the disclosure obligation during job applications or would you like to discuss further? Please contact Gerard Zuidgeest, Rose Horstman, or one of our other employment law specialists.